Walmart’s growth model may be peaking due to structural declines in miles driven, income of its customer base and rising competition from dollar stores.
by Charles H. Smith, Of Two Minds:
Structural declines in miles driven, middle and working-class income and rising competition from dollar stores may be leading to Peak Walmart. Walmart’s model of superstores built on the edge of town with an inventory/distribution system based on high turnover may have reached the point of diminishing returns.
There are various signs of this, for example: Wal-Mart Nails The “Consumer Recovery” Coffin Shut (Zero Hedge)
Correspondent Mark G. ties together the long-term dynamics in this insightful analysis:
The proliferation of Walgreens & CVS standalone pharmacies, plus new construction standalone Dollar General and Family Dollar stores is reaching something of a critical mass. The only real difference between the first pair and the second pair of chains is Walgreens & CVS have a prescription drug department.
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